Category: Broker Investigations

FINRA Fines and Suspends Naples Florida Broker Brian Pittman Over Sales Not Approved by Member Firm

Posted by finralawyer on November 14, 2017 with 0 Comment

FINRA found that Brian Lewis Pittman participated in private securities transactions by making sales of oil and gas limited partnership interests that were not approved by his member firm, Westport Resources Investment Services, Inc.

FINRA found that between April 2011 and June 2011, Pittman participated in private securities transactions by referring customers with Westport accounts to invest in limited partnership interest in the Permian Advanced Oil Recovery Investment Fund 1 LP (“Permian”), which was being offered by Quest. The Permian limited partnership interests are a security. Specifically, Pittman referred two customers with Westport accounts to Quest. In total, these customers invested $375,000 in the Permian offering. Pittman also participated in the transactions by assisting the customers with processing the requisite paperwork to effect the transactions. In connection with these transactions, Pittman received compensation from Quest of approximately $45,000.

Pittman’s failure to obtain approval of his participation in such transactions has resulted in an assessed fine of $7,500 and suspension from any FINRA member firm for four months. According to FINRA Broker Check (CRD # 2963196), the suspension is in effect from December 15, 2014, through April 14, 2015.

Brian Lewis Pittman has previously been registered with the following member firm(s):

SABADELL SECURITIES USA, INC.
CRD #148137
MIAMI, FL
10/2012 – 02/2014

WESTPORT RESOURCES INVESTMENT SERVICES, INC.
CRD #24535
NAPLES, FL
02/2010 – 10/2012

BONDS.COM, INC.
CRD #43875
NAPLES, FL
10/2007 – 02/2010

JVB FINANCIAL GROUP, LLC
CRD #104412
BOCA RATON, FL
08/2007 – 10/2007

PINNACLE BROKERAGE SERVICE, INC.
CRD #107803
CHARLOTTE, NC
07/2007 – 08/2007

SUNTRUST INVESTMENT SERVICES, INC.
CRD #17499
SARASOTA, FL
03/2006 – 07/2007

CITIGROUP GLOBAL MARKETS INC.
CRD #7059
NEW YORK, NY
11/2003 – 02/2006

ROBERT W. BAIRD & CO. INCORPORATED
CRD #8158
MILWAUKEE, WI
12/1997 – 11/2001

If you and have suffered investment losses, please contact the Hanley Law to explore your legal options. The Hanley Law is dedicated to helping investors who have been victims of securities fraud. If you have lost money as a result of securities fraud, you may be able to recover your financial losses. Contact us today toll free at (239) 649-0050 for a free initial consultation.

J.P. MORGAN Broker Permanently Barred for Misappropriation of Funds

Posted by finralawyer on November 14, 2017 with 0 Comment

Former J.P. Morgan Broker Alen Alic was permanently barred from acting as a broker or otherwise associating with firms that sell securities to the public.

Prior to becoming associated with J.P. Morgan Securities, LLC as a securities broker, Alic was a retail bank employee with JPMorgan Chase Bank, N.A., an affiliate of J.P. Morgan Securities. While working as a retail bank teller, Alic allegedly misappropriated $3,000 in cash from his teller drawer and converted it for his personal use without the bank’s knowledge or consent. (See FINRA Case #2014043420501)

If you have suffered investment losses, please contact the Hanley Law to explore your legal options. The Hanley Law is dedicated to helping investors who have been victims of securities fraud. If you have lost money as a result of securities fraud, you may be able to recover your financial losses. Contact us today toll free at (239) 649-0050 for a free initial consultation.

Ameriprise Financial Broker Randall A. Samson Barred by FINRA for Conversion of Customer Funds to Personal Bank Account

Posted by finralawyer on November 14, 2017 with 0 Comment

Randall A. Samson of Ameriprise Financial Services, Inc. was barred for distributing funds from a customer’s 401(k) account into his personal bank account. In connection, Samson also provided false information to Ameriprise regarding the conversion of funds.

FINRA affirms that Samson abused his position as the plan’s trustee and financial advisor to complete a $10,000 distribution from customer’s 401(k) account into his personal bank account, which he used to fund payroll and other company expenses. Samson falsely represented the knowledge and consent of the customer for the distribution, and further provided false statements to his firm’s compliance department in connection with an inquiry into the $10,000 distribution.

According to FINRA’s Broker Check, Randall A Samson (CRD #2691518) of Ameriprise Financial Services, Inc. has been permanently barred from acting as a broker or otherwise associating with firms that sell securities to the public. Randall A. Samson first became registered with a FINRA member firm in 1996. He was registered with Ameriprise Financial Services, Inc. (or its predecessor firms) from January 1996 until Ameriprise terminated his registration in April 2014.

Randall A. Samson was an acting broker for 18 years with the following securities firm(s):

AMERIPRISE FINANCIAL SERVICES, INC.
CRD #6363
OAKDALE, CA
01/1996 – 04/2014

IDS LIFE INSURANCE COMPANY
CRD #6321
MINNEAPOLIS, MN
01/1996 – 07/2006

If you have suffered financial losses as a result of your Broker’s or Brokerage Firm’s misconduct, please contact the Hanley Law to explore your legal rights. The Hanley Law is dedicated to helping investors who have been victims of securities fraud. If you have lost money as a result of fraudulent activity, you may be entitled to recover financial losses. Contact our office toll free at (239) 649-0050 for a free initial consultation.

FINRA Issues New Investor Alert, E-Cigarette Stock Scams: New Smoking Technology Could Light Up Pump-and-Dump Fraud

Posted by finralawyer on November 14, 2017 with 0 Comment

The Financial Industry Regulatory Authority (FINRA) issued a new Investor Alert called E-Cigarette Stock Scams: New Smoking Technology Could Light Up Pump-and-Dump Fraud cautioning investors against “pump and dump” fraud and offering tips to avoid being victimized.

FINRA has warned investors that while it is possible that E-Cigarettes could lead to promising investment opportunities, they could also give rise to “pump and dump” scams. FINRA is concerned that fraudsters may induce investors into purchasing stock through aggressive stock promotion activities which may ultimately result in a classic “pump and dump” fraud. FINRA has advised that the “pump and dump” scam begins when investors are lured into making investments as a result of aggressive and optimistic statements about the business. The promotion intended to create demand for the company’s shares. Then, once the share price and volume increase, the fraudsters behind the scam sell off their shares at a profit and stop promoting the stock. This in turn causes the price of the stock to fall and leaves the unsuspecting investors with worthless, or near-worthless, stock.

FINRA has provided eight (8) tips to assist would-be investors from being victimized by a potential e-cigarette stock scam.

Be skeptical of social media and promotional materials provided by unknown senders, especially if the information is always positive, similar and contains no mention of risk.
• Research the company before investing.
• Research where the stock trades.
• Research the company’s SEC filings.
• Be wary of reverse merger activity.
• Be wary of claims of being the next big thing.
• Be wary of companies that often change their name or business focus.
• Carefully read the disclosure statements.

Hanley Law Investigating Claims Involving Douglas West and Wells Fargo Advisors, LLC

Posted by finralawyer on November 14, 2017 with 0 Comment

Hanley Law is currently investigating claims against Douglas West (CRD No.: 724774) and Wells Fargo Advisors, LLC (CRD No. 19616). The Hanley Law recently filed a FINRA Arbitration claim on behalf of a Claimant in which it was alleged that registered representative Douglas West made unsuitable recommendations to Claimant to purchase investments heavily weighted in the real estate sector. In fact, the majority of Claimant’s retirement portfolio was allocated to equities or equity funds including:

Alpine Total Dynamic Dividend Fund
• American Capital Ltd.
• American Home Mortgage Investment Corp.
• Cohen & Steers Premium Income Realty Fund, Inc.
• Cohen & Steers REIT & Preferred Income Fund, Inc.
• Health Care REIT, Inc.
• ING Clarion Global Real Estate Income Fund
• Kohlberg Capital Corp.
• MLP & Strategic Equity Fund, Inc.
• PIMCO High Income Fund
• TEPPC Partners UT, LP

Claimant alleges that as a result of Wells Fargo Advisors over allocation of his portfolio into equity investments and the real estate sector that Claimant’s IRA account suffered devastating losses from 2007 through the present. Claimant alleges that his investment losses are the direct result of Wells Fargo Advisors’ failure to adhere to their own asset allocation models. Claimant alleges that due to the misconduct of Douglas West and Wells Fargo Advisors, Claimant has suffered out-of-pocket losses for which he seeks a recovery.

Claimant has alleged that Respondent Wells Fargo Advisors is liable for common law fraud; breach of fiduciary duty; breach of contract; breach of the implied covenant of good faith and fair dealing; and negligence. Claimant has alleged that Wells Fargo Advisors breached FINRA rules, including but not limited to, FINRA rule 2111, 2110 and 3010 which are the basis for and the standard of care for FINRA member firms and their associated persons. Claimant further alleged that Wells Fargo Advisors was negligent in the hiring, retention, and supervision of Douglas West.

If you were a client of Douglas West or Wells Fargo Advisors and have suffered investment losses, please contact the Hanley Law to explore your legal rights. The Hanley Law is dedicated to helping investors who have been victims of securities fraud. If you have lost money as a result of securities fraud, you may be able to recover your financial losses. Contact us today toll free at (239) 649-0050 for a free initial consultation.

Hanley Law Investigating Claims Involving Anthony Fisher and Morgan Stanley & Co. Inc.

Posted by finralawyer on November 14, 2017 with 0 Comment

Hanley Law is currently investigating claims against Anthony Fisher (CRD No.: 2428633) and Morgan Stanley & Co. Incorporated (CRD No. 8209). The Hanley Law recently filed FINRA Arbitration claims on behalf of Claimants in which it was alleged that Anthony Fisher made unsuitable and fraudulent recommendations to purchase the Tube Media Corp. and Cardiac Network, Inc. Claimants allege that Anthony Fisher never explained the dangers of the penny stocks. Moreover, Claimants alleged that Anthony Fisher knew or should have known that these stocks were extremely risky investments and penny stock frauds. Further, the Securities and Exchange Commission mandates penny stock disclosures be provided to Claimants. Claimants alleged that Morgan Stanley did not provide the proper disclosures and are thus liable for their material omission. Due to Morgan Stanley’s misconduct, Claimants allege they have suffered out-of-pocket losses for which they seek a recovery.
In the recently filed arbitration claims, the Claimants alleged that Morgan Stanley & Co. Inc. through its registered representative Anthony Fisher, violated industry rules, including but not limited to, FINRA’s customer suitability standard (Rule 2310) as well as FINRA rules 3010 and 2110 and that Morgan Stanley violated their duty of care and were negligent. Furthermore, it has been alleged that Morgan Stanley breached the contract that was entered into between Claimants and Morgan Stanley and Morgan Stanley also breached the fiduciary duty that a securities firm and its employees/agents owe to their clients. Lastly, it has been alleged that Morgan Stanley’s misconduct constitutes common law fraud and that the Claimants’ accounts at issue were handled negligently and Morgan Stanley & Co. Inc. was negligent in their hiring, retention, and supervision of their employees.
If you were a client of Anthony Fisher or Morgan Stanley & Co. Inc. and have suffered investment losses, please contact the Hanley Law to explore your legal rights. The Hanley Law is dedicated to helping investors who have been victims of securities fraud. If you have lost money as a result of securities fraud, you may be able to recover your financial losses. Contact us today toll free at (239) 649-0050 for a free initial consultation.

Hanley Law Investigating Claims Involving Jason Marshall and Wells Fargo Advisors, LLC

Posted by finralawyer on November 14, 2017 with 0 Comment

Hanley Law is currently investigating claims against Jason Marshall (CRD No.: 4012664) and Wells Fargo Advisors, LLC (CRD No.: 19616). The Hanley Law recently filed a FINRA Arbitration claim on behalf of a Claimant in which it was alleged that Jason Marshall made certain representations that were materially false, and that the Claimant relied on those false representations to his detriment. Furthermore, Claimant alleged that Wells Fargo Advisors omitted material facts in making investment recommendations to him. Claimant alleged that Wells Fargo Advisors, through their registered representative Jason Marshall, recommended an unsuitable investment strategy. Indeed, Claimant alleged that Wells Fargo Advisors and Jason Marshall recommended a 72(t) election with unsustainable monthly distributions. Additionally, Claimant alleged Marshall over-allocated his accounts to equity investments. It was further alleged that Wells Fargo Advisors ignored Claimant’s age and financial position in making the unsuitable investment recommendations. Claimant alleges that due to Wells Fargo Advisor’s misconduct, Claimant has suffered out-of-pocket losses for which he seeks a recovery.

FINRA Rule 3010 requires each member to establish and maintain a system to supervise the activities of each registered representative and associated person in order to achieve compliance with the securities laws, regulations, and FINRA rules. FINRA rule 3010 requires broker dealers to ensure that their associated persons adhere to FINRA’s suitability guidelines.

In the recently filed arbitration claim, the Claimant alleged that Wells Fargo Advisors, through its registered representative Jason Marshall, violated industry rules, including but not limited to, FINRA’s customer suitability standard (Rule 2310) as well as FINRA rules 3010 and 2110 and that Respondents violated their duty of care and were negligent. Furthermore, it has been alleged that Wells Fargo Advisors breached the contract that was entered into between Claimant and Wells Fargo Advisors and that Wells Fargo Advisors also breached the fiduciary duty that a securities firm and its employees/agents owe to their clients. Lastly, it has been alleged that Wells Fargo Advisor’s misconduct constitutes common law fraud and that the Claimant’s account was handled negligently, that Wells Fargo Advisors was negligent in their hiring, retention, and supervision of their employees.

If you were a client of Jason Marshall or Wells Fargo Advisors and have suffered investment losses, please contact the Hanley Law to explore your legal rights. The Hanley Law is dedicated to helping investors who have been victims of securities fraud. If you have lost money as a result of securities fraud, you may be able to recover your financial losses. Contact us today toll free at (239) 649-0050 for a free initial consultation.

Hanley Law Investigating Claims Involving Peter Bruno and Wall Street Money Center Corporation

Posted by finralawyer on November 14, 2017 with 0 Comment

Hanley Law is currently investigating claims against Peter Bruno (CRD No.: 1180960) and Wall Street Money Center Corporation (CRD No.: 21788). The Hanley Law recently filed FINRA Arbitration claims on behalf of Claimants in which it was alleged that Wall Street Money Center Corp. and Peter Bruno invested Claimants’ accounts unsuitably and further used a fee structure that was fraudulent. Furthermore, Claimants allege Bruno did not disclose to Claimants a fraudulent transaction fee. Indeed, it is alleged that Wall Street Money Center Corp. and Peter Bruno misinformed Claimants that they were passing on a clearing fee from their clearing firm Sterne Agee and Leach. It was further alleged that Wall Street Money Center Corp. and Peter Bruno failed to recommend and implement a suitable investment strategy for Claimants’ accounts in breach of their duty and obligations to Claimants under industry rules and regulations. Claimants allege that Respondent, Wall Street Money Center Corporation through their registered representative Peter Bruno, informed Claimants that they would meet their investment objectives. It has been alleged that Wall Street Money Center Corp. and Peter Bruno invested Claimants’ accounts contrary to their stated objectives and risk tolerance. Claimants allege that due to Wall Street Money Center Corp. and Peter Bruno’s misconduct, Claimants have suffered out-of-pocket losses for which they seek a recovery.
In the recently filed arbitration claims, the Claimants alleged that Respondent, Wall Street Money Center Corporation through its registered representative Peter Bruno, violated industry rules, including but not limited to, FINRA’s customer suitability standard (Rule 2310) as well as FINRA rules 3010 and 2110 and that Wall Street Money Center Corp. and Peter Bruno violated their duty of care and were negligent. Furthermore, it has been alleged that Wall Street Money Center Corp. and Peter Bruno breached the contract that was entered into between Claimants and Wall Street Money Center Corp. and Peter Bruno and that Wall Street Money Center Corp. and Peter Bruno also breached the fiduciary duty that a securities firm and its employees/agents owe to their clients. Lastly, it has been alleged that Wall Street Money Center Corp. and Peter Bruno’s misconduct constitutes common law fraud and that the Claimants’ accounts at issue were handled negligently and Wall Street Money Center Corporation was negligent in their hiring, retention, and supervision of their employees.
If you were a client of Peter Bruno or Wall Street Money Center Corporation and have suffered investment losses, please contact the Hanley Law to explore your legal rights. The Hanley Law is dedicated to helping investors who have been victims of securities fraud. If you have lost money as a result of securities fraud, you may be able to recover your financial losses. Contact us today toll free at (239) 649-0050 for a free initial consultation.

Hanley Law Investigating Claims Involving Jose Ramirez, UBS Financial Services Inc. and UBS Financial Services of Puerto Rico

Posted by finralawyer on November 14, 2017 with 0 Comment

Hanley Law is currently investigating claims against Jose Ramirez (CRD No.: 1519748), UBS Financial Services, Inc. (CRD No.: 8174) and UBS Financial Services, Inc. of Puerto Rico (CRD No.: 13042). The Hanley Law recently filed a FINRA Arbitration claim on behalf of a Claimant in which it was alleged that UBS caused Claimant to incur investment losses in excess of $600,000 when UBS, through their registered representative Jose Ramirez, made a recommendation and sale of an over-concentrated position in leveraged Puerto Rican municipal bond funds which were underwritten, issued and administered by UBS. Claimant alleges in the complaint that UBS, and their registered representative, Jose Ramirez, assured Claimant that, among other things, he would safely make a reasonable return on his money by investing in safe funds that held “bonds” guaranteed by the Puerto Rican government. Claimant further alleges that the funds were actually UBS proprietary mutual funds that invested in local municipal bonds and that such funds were underwritten, structured, marketed and managed by UBS and their corporate affiliates. Claimant alleged that unbeknownst to him, leverage was utilized in the funds to boost returns which increased the risks associated with the funds. Claimant further alleged that UBS marketed the funds as conservative investments with a primary investment objective of preservation of capital. Claimant alleged that UBS made an institutional decision to promote their closed-end mutual funds to investors with full knowledge that the funds were leveraged securities that could easily and quickly suffer substantial losses if Puerto Rico’s municipal debt declined in value.

In the recently filed arbitration claim, Claimant alleged that Respondents UBS Financial Services, Inc. and UBS Financial Services Inc. of Puerto Rico, through its registered representative Jose Ramirez, breached the fiduciary duty that a securities firm and its employees/agents owe to their clients. Claimant alleged that Respondents were negligent and that they failed to perform adequate due diligence on the products offered and sold to Claimant, that they approved unsuitable investment products for sale to their customers, and that UBS recommended and sold unsuitable and risky securities to Claimant. It has been further alleged that UBS breached their customer agreements which obligated UBS to comply with all FINRA, SEC, and other regulatory rules and regulations, as well as state and federal laws, including but not limited to, Florida Statute § 517. Lastly, it has been alleged that UBS’s misconduct constitutes common law fraud, that the Claimant’s account at issue were handled negligently and that UBS Financial Services, Inc. and UBS Financial Services Inc. of Puerto Rico were negligent in their hiring, retention, and supervision of their employees.

If you were a client of Jose Ramirez, UBS Financial Services, Inc. or UBS Financial Services Inc. of Puerto Rico and have suffered investment losses, please contact the Hanley Law to explore your legal options. The Hanley Law is dedicated to helping investors who have been victims of securities fraud. If you have lost money as a result of securities fraud, you may be able to recover your financial losses. Contact us today toll free at (239) 649-0050 for a free initial consultation.

Hanley Law Investigating Claims Involving Renita McDougal and Wells Fargo Advisors

Posted by finralawyer on November 14, 2017 with 0 Comment

Hanley Law is currently investigating claims against Renita McDougal (CRD No.: 2041218) and Wells Fargo Advisors, LLC (CRD No.: 19616). The Hanley Law recently filed a FINRA Arbitration claim on behalf of a Claimant in which it was alleged that Renita McDougal failed to recommend and implement a suitable investment strategy for Claimant in breach of the duties and obligations owed to Claimant under industry rules and regulations. It was further alleged that Respondent Wells Fargo Advisors, LLC, through their registered representative Renita McDougal, failed to inform Claimant of all of the material risks associated with her portfolio.

It has also been alleged that McDougal failed to inform Claimant of all of the material risks associated with her portfolio and that McDougal failed to disclose material risks and failed to recommend suitable investments given Claimant’s investment objectives. Claimant also alleged that Renita McDougal made promises to Claimant in order to secure her accounts, including the proper management of her portfolio in light of her stated investment objectives and that Renita McDougal did nothing to protect the assets Claimant entrusted to her care. Moreover, it has been alleged that Respondents implemented an overly aggressive investment strategy. Claimant alleged that she lost principal as a result of Respondents’ actions and Claimant’s investment goals were not met.

In the recently filed arbitration claim, the Claimant alleged that Respondent, Wells Fargo Advisors through its registered representative Renita McDougal, violated industry rules, including but not limited to, FINRA’s customer suitability standard (Rule 2310) as well as FINRA rules 3010 and 2110 and that Respondent violated their duty of care and was negligent. Furthermore, it has been alleged that Respondent breached the contract that was entered into between Claimant and Respondent and that Respondent also breached the fiduciary duty that a securities firm and its employees/agents owe to their clients. Lastly, it has been alleged that Respondent’s misconduct constitutes common law fraud and that the Claimant’s account at issue were handled negligently and Wells Fargo Advisors was negligent in their hiring, retention, and supervision of their employees.

If you were a client of Renita McDougal or Wells Fargo Advisors and have suffered investment losses, please contact the Hanley Law to explore your legal options. The Hanley Law is dedicated to helping investors who have been victims of securities fraud. If you have lost money as a result of securities fraud, you may be able to recover your financial losses. Contact us today toll free at (239) 649-0050 for a free initial consultation.